Manufacturing exports strengthen

Businesses expect growth to continue in the coming quarter, finds the CBI

The manufacturing sector continued to grow in May, as export orders improved, according to new figures.

The CBI Industrial Trends Survey found that 34% of manufacturers said their output over the past three months was up and 25% said it was down, giving a balance of +9%. This is a recovery from April’s 22 month low (+4%) and was above average (+3%).

Businesses expect output to grow in the coming quarter, with 31% predicting growth, and 15% a decline, giving a rounded balance of +15%.

The research found that 20% of manufacturers' order books were above normal, and 24% said they were below normal, giving a rounded balance of -5%. This remained well above average (-15%).

Rain Newton-Smith, CBI director of economics, said: “Things are looking up for our manufacturers, with growth continuing and export orders improving.

“Some of this could be down to an improvement in the eurozone’s momentum - but the strengthening pound is still proving quite a challenge.

“To drive trade progress forwards, we want to see the new government recommit to an ambitious, long-term export target to fully unlock the UK’s potential. Doing this will be vital to boosting investment, jobs and growth right across the country.”

The survey was conducted between 28 April and 15 May, with 501 manufacturers responding.